EU Expands Iran Sanctions Framework to Target Threats to Freedom of Navigation
On 22 May 2026, the Council of the European Union adopted a decision amending its existing Iran sanctions framework to allow the EU to target individuals and entities involved in Iran's actions threatening freedom of navigation in particular in the Strait of Hormuz.
Background and context
The Strait of Hormuz has been largely closed to commercial shipping since 28 February 2026, when Iran moved against vessels transiting the waterway in response to US and Israeli air strikes on Iranian targets. The Strait carries approximately a fifth of global oil and LNG supplies, and its disruption has had a significant impact on energy and commodity markets. Since the closure, Iran's Islamic Revolutionary Guard Corps (IRGC) has issued warnings forbidding passage.
The IRGC was itself designated a terrorist organisation by the EU on 19 February 2026, bringing it within the scope of the EU's counterterrorism sanctions regime.
In March 2026 the European Council had called for the full implementation of UNSC Resolution 2817 (2026), stressing the need to ensure maritime security and respect freedom of navigation, and condemning any acts threatening vessel traffic or obstructing vessels' entry into and exit from the Strait of Hormuz.
Nature of the amendment
The EU has not issued a new standalone sanctions regime. Rather, it has expanded the scope of the existing framework established in July 2023 (which originally addressed Iran's military support to Russia) and subsequently broadened in May 2024 (to cover support to armed groups in the Middle East and Red Sea region). The amended framework now enables the EU to introduce further restrictive measures in response to Iran's actions undermining freedom of navigation in the Strait of Hormuz.
Scope of available measures
The restrictive measures available under the expanded framework consist of travel restrictions prohibiting listed individuals and entities from entering or transiting EU territory and asset freezes. In addition, EU citizens and companies are forbidden from making funds, financial assets or economic resources available to listed individuals and entities.
No designations have been made at this stage. The framework simply creates the legal basis for the EU to act swiftly should it choose to do so.
Legal Texts and Further Resources
The legal acts implementing the amended framework are Council Decision (CFSP) 2026/1157 and Council Regulation (EU) 2026/1164, both dated 22 May 2026 and in force from 27 May 2026. These can be found here and here. Further information is available on the EU Council press release.
We will continue to monitor developments and will issue further updates as the situation evolves. Members with specific queries are invited to contact their usual Club contact.